- Swiss franc drops versus the dollar but continues to outperform against EUR, GBP.
- USD/CHF heads for first weekly gains after falling during ten in a row.
The USD/CHF lost almost a hundred pips on Thursday and on Friday is up by more than fifty on the back of a stronger US dollar. Recently the pair peaked at 0.9137, and as of writing it trades at 0.9120/25, up 30 pips for the week, enough for being the best weekly performance since May.
A rebound of the US dollar across the board boosted USD/CHF on Friday. The DXY is up by more than 0.50%, trading at weekly highs around 93.30. Better-than-expected US data, a bullish correction and profit-taking after many weeks of losses, are among the reasons for the recovery of the greenback.
Not even lower US yields stopped the dollar. Economic reports came in above expectations. The Markit PMI manufacturing and service rose to the highest level in months, and Existing Home Sales also climbed above expectations. The dollar peaked after the reports and then pulled back modestly, holding onto most of its daily gains.
The Swiss franc, despite losing versus the US dollar, it is rising on Friday against its main European rivals. The EUR/CHF made a sharp reversal on Thursday from two-month highs near 1.0850 and extended the slide on Friday; it is testing the August bottom around 1.0730/35.
Technical levels
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